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It is scary easy to get into debt.
- Thread starter It’s Time To Go
- Start date
I'll never have a credit card in my life unless something really really requires it. Debit for life.
I took a whole new career path to pay off my credit card debt. I'm currently working a job that's the antithesis to everything I want out of life. But, I just paid off one credit card in full in one fell swoop. Just gotta axe three more and we're clear.
my issue was stress spending. Family crisis was insane the past two years, I was the sole person trying to hold everyone together, and just to keep my mind in line, I way outspent my limits and got there on my own. But I will be paid off by the end of the year
my issue was stress spending. Family crisis was insane the past two years, I was the sole person trying to hold everyone together, and just to keep my mind in line, I way outspent my limits and got there on my own. But I will be paid off by the end of the year
In some countries though you're just throwing away free money.
If you get a card with a good reward program and use it properly you will come out making money by using a credit card.
I just limit credit to what is within my budget. If it is something I wouldn't be able to afford with my debit, I don't do it.
I have 4 CCs and I manage them pretty well with that rule.
I have 4 CCs and I manage them pretty well with that rule.
the fuck is wrong with them. please tell me this isn't real.this made me remember that wild couple's debt story
Debt: A Love Story | Wealthsimple
In exchange for anonymity, one couple told us the brutal details of their life in the grip of an epic cycle of debt.www.wealthsimple.com
warning: it gets increasingly frustrating to read
I`m the complete opposite I use my credit card for everyday purchases. I haven't used my debit card in well over a decade. I get cash back for every purchase and a 2 year extended warranty, free travel insurance. Basically the credit card company pays me about 800 dollars a year to use their card for free.
It's really easy to say "Don't spend money you don't have" but I remember racking up a huge Paypal Credit debt when I was younger specifically because I kept getting advertisements saying how I could 'buy that console I wanted' by signing up. It.'s hard to place 100% of the blame on someone when credit companies want you to do this very thing.
Track your spending. Know where every dollar is going. It becomes a lot easier to reduce spending and budget when you have a detailed record of all the unnecessary shit you bought staring back at you. YNAB is amazing for this.
I used to be bad about spending, until I got my first real job out of college, started earning serious money, and decided I didn't want to waste most of it to lifestyle creep. It's amazing how much further your money gets you when you use it efficiently. Again, I highly recommend YNAB for this.
Also, before taking out any sort of loan, work out exactly how much money you will end up paying in interest for a given payoff period. It's high school math.
I used to be bad about spending, until I got my first real job out of college, started earning serious money, and decided I didn't want to waste most of it to lifestyle creep. It's amazing how much further your money gets you when you use it efficiently. Again, I highly recommend YNAB for this.
Also, before taking out any sort of loan, work out exactly how much money you will end up paying in interest for a given payoff period. It's high school math.
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Only use credit cards for online purchases and lately at the gas pump, after numerous news stories about card skimmers. Easier to contest charges on a credit card, and I don't have to worry about my checking account being wiped out. Using a credit card to make normal purchases or for things you know you can't afford at that time is not smart.
Great thing was I started out by not having a credit card for years and years, because I was always in the mentality that "if I don't have the money to spend on it, I won't buy it". Funny enough that has been to my advantage since getting more comfortable with the idea of having a credit card that offers cash back. Pretty much making money off of purchases that I have to make every month like gas, phone bill, groceries, etc, but of course these companies want you to cash out and pay the minimum balance to turn you into a debt slave for as long as they can.
Well, his logic was that if he applied for another job, and they ask him if he ever filed bankruptcy, he would have to tell the truth and might hurt his chances to get the job.
So, yeah. Its something that will follow him forever, so I guess he sees it as an absolute last resort.
My wife and I recently got out of $3,000ish worth of credit card debt (for medical bills...not random purchases), and Visa "rewarded" us by increasing our credit limit by $4,000 dollars without us asking.
They absolutely will people into debt.
They absolutely will people into debt.
Not interested in free money, especially not a bank's money unless I'm unlawfully taking it away from them.
That sounds very irrational. It IS a last resort. And they seemed to have reached that point long ago.
Never had a credit card until I wanted to buy a house. I had down payment ready and everything, but didn't have credit history.
Has to wait an additional 2 years using the two credit cards to build up credit history. Mostly used it to buy gas and other random stuff. It would all get paid off when the bill was due so I have never paid interest. Bought house with no issues in 2017.
NEVER PAY THE MINIMUM ON A CREDIT CARD. Always pay what's due on the bill. THE ENTIRE AMOUNT.
Has to wait an additional 2 years using the two credit cards to build up credit history. Mostly used it to buy gas and other random stuff. It would all get paid off when the bill was due so I have never paid interest. Bought house with no issues in 2017.
NEVER PAY THE MINIMUM ON A CREDIT CARD. Always pay what's due on the bill. THE ENTIRE AMOUNT.
Yep - 100% agree. CC's are good for building credit. I get it that some people in the thread are like "NEVER GETTING A CREDIT CARD" but you also will want to build credit history or else lending money for large purchases like homes/cars, etc will either be more difficult or you wont get great rates tbh.
There's only a few times IMO to be carrying over a balance month to month, one being just because you have to due to some unforeseen circumstance but are going to be able to pay off the rest the next monthor you have a 0% interest for X number of months off thing going on and you can still ideally pay off a large chunk of it before the first statement even cuts off.
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Damn OP you really spent like that right after getting your first card?
They must have toned down the messaging to young folks because I was damn near scared to death of credit with the way they kept demonizing it, and my parents kept warning me about the pitfalls of it all. It created a situation where I took far too long to establish any credit at all out of a fear of it. And when I finally did I was extremely cautious with.
Im glad you escaped that shit though. Life has enough anxiety as it is. Don't need that kind of nonsense weighing on your mind while trying to battle the work week, that's for sure.
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Yep agreed. I listened to the "Don't get a credit card" people and it cost me. It would have been much smarter to get one and eliminate the balance monthly. THAT should be what people are told to do. I would have had another 5 years of flawless credit history when I needed it, instead of having to eat the worst deal ever on the first vehicle I financed. It was only a 1 year duration as I paid most of it off with the down payment, but still.
I view credit cards as a means to build credit history and after you've done that, a line of short term credit (think loan that lasts for 3 months for example) that works out cheaper than going to a bank and getting a 12 month loan with higher total interest.
Anecdotally Amex throws you massive credit limits in the UK, like 3-5x what a bank would give you to start with.
I only get low interest credit cards that don't charge annually for the privilege of having a credit card. In the UK that means 6-11% apr currently.
Anecdotally Amex throws you massive credit limits in the UK, like 3-5x what a bank would give you to start with.
I only get low interest credit cards that don't charge annually for the privilege of having a credit card. In the UK that means 6-11% apr currently.
If they did that than nobody would go to college and the entire system would break down.
The only thing I've ever taken a loan to buy is a house. I do realize I'm privileged in the sense that I live in a city with fantastic public transit (Madrid) and a country with public and reasonably priced private options for education and healthcare, but still, people use credit for a lot of trivial shit they should absolutely not be using credit for.
I'm lucky my credit card I had in uni had a limit of 500 dollars. I always had it maxed out, and when it wasn't it felt like I had money to spend.
Then when I moved to Japan, I couldn't get one for years, and now that I have one, it is automatically set up to pay it off in full at the end of each month. I can be bad with money, so I'm glad my lesson was learned with an amount that was easily paid off.
Japan is still a chas society, so I only really use it for internet purchases.
Then when I moved to Japan, I couldn't get one for years, and now that I have one, it is automatically set up to pay it off in full at the end of each month. I can be bad with money, so I'm glad my lesson was learned with an amount that was easily paid off.
Japan is still a chas society, so I only really use it for internet purchases.
In general, I agree, but I'm not sure it would have helped in this situation. You can teach plenty of things but it doesn't do any good if the person doesn't learn from what they're taught. The OP said plenty of people told him how to use one responsibly in his first thread about credit cards and he ignored all of the advice which is how the OP got in this mess. I have to imagine even if the OP learned this in high school, they would have ignored what they were taught then too. Sometimes people have to learn the hard way unfortunately.
This may be true in the US because of the downright insane system used there, but at least in Spain this is not a thing; banks do not care whether or not you've been taking credits you don't need to cover for mundane expenses, as if that was any kind of indicator on how likely you are to keep up with a house loan's payments. I would expect (or at least hope) most other countries to have some semblance of sanity in this regard too.
Canada is basically the same as the US in this regard. Without a (good) credit history, you are basically unable to get a home mortgage.
Like it or not, a credit card (or several) is essential for most adults in North America. Fortunately, they also provide other benefits (cash back/extended warranties/fraud protection/etc) so you can benefit from them as well.
And for the corporations out there, just try not to design business models that are predatory.
Is half of the replies from people who live under a rock? You have to use credit cards and line of credit to build credit so you can get approved for mortgages or get line of credits for different investments. I mean, even getting a new car and getting approved for utilities and a smart phone plan with no deposit too needs average credit usage at the minimum.
Also you know, getting approved for an apartment.
Also you know, getting approved for an apartment.
Why is it insane that banks use your history of paying your (credit card) bills as an indication of how likely you are to promptly and fully...pay your (mortgage) bill?
I don't get it? I'm horrible at financial stuff, massive learning disability involving anything math related. Got my first credit card at 34... and it seems pretty simple to me. If I use it, I pay it off the next month. Also I went and got one with a low spending amount as extra safety in case I go nuts.
What exactly compelled you to treat your new credit card like a lottery ticket?
and how do you know you wont do it again
and how do you know you wont do it again
Same, I avoided it for so long that establishing my own line of credit so late has screwed me more than helped.
I know France doesn't have credit scores nor credit history reports. Is Spain the same? Do people over there not have that?
Not when the stock market is basically on fire, while interest rates are the lowest they've been in decades. I know it won't last but it would be silly not to milk it.
Its definitely meant to be a trap.
If you are not aware of that and don't have the control to not go over your own resources you shouldn't get a credit card.
I have always tried to use my credit card as much as possible to get the cash back or points to travel places so it works for me, but that doesn't mean it is a good idea for everyone.
If you are not aware of that and don't have the control to not go over your own resources you shouldn't get a credit card.
I have always tried to use my credit card as much as possible to get the cash back or points to travel places so it works for me, but that doesn't mean it is a good idea for everyone.
I use my credit card the same way I use my debit card. Spend what I can afford. Make it a point to pay the full outstanding amount every month- that way, if I'm.overspending for the month, I feel and see the full pinch of my spending in my bank balance.
Credit cards are good tools to have if you use them wisely. I had mine when I entered the workforce 13 years back- and have been slowly building up my credit score. I just keep 2 cards with me- one to use to accumulate airline miles (also have a fourth night hotel free benefit) and another card for Petrol points.
Credit cards are good tools to have if you use them wisely. I had mine when I entered the workforce 13 years back- and have been slowly building up my credit score. I just keep 2 cards with me- one to use to accumulate airline miles (also have a fourth night hotel free benefit) and another card for Petrol points.
This. I use my credit card for a lot of purchases for this reason.
I also have a low limit on my credit card, which makes it impossible to spend more than I earn in a month. Though I pay off the whole balance every two weeks when I get paid. I also don't make large purchases on my credit card unless I already have the money in my checking account to pay it off.
lol we don't even learn about taxes in hs. filing them in January is something you're supposed to just magically know.
Hard to feel sorry for OP but at least they learned their lesson.
I've had credit cards since age 20 and have always paid my statement in full.
I've had credit cards since age 20 and have always paid my statement in full.
I'm not sure what's so scummy about Apple products. What you see is what you get. It isn't like the nickle and diming microtransactions of games or hidden fees of plans/contracts.
Sure, their stuff is expensive, but nobody needs it and there are cheaper alternatives.